letterman. they have a lot. that is all we have got i hope you made money today. we will see you tomorrow. the willis report is next. >> tonight on "the willis report". said years after much of the country suffered a blackout has the power grid change? another foundation under fire. this time bill clinton running a multimillion-dollar deficit and i will break down the numbers. take a bite out of apple find out why it regains its shine and we watch out for you tonight on the willis support.

>> gerri@foxbusiness.com billion dollar merger of american airlines said u.s. air raids grounded for the time being for a top regulators say it is a no go for the bottom line. florida republican attorney-general sat down with me today. she is one of six attorney-general to say it could translate into higher cost per cohousing with my first and foremost, obligation as attorney-general is to protect our consumers. with the increased flight of ticket prices are bag chairs or many other half hidden cost to affect floridians are tourist with interstate that is my obligation as attorney general in the state of florida. >> with american aid u.s.

airways mergers say previous mergers have made it much more reliable. the income stream is much better. we have more flights and we will get it over a billion dollars of savings but keep in mind americanism vagrancies of a dozen have been then that company could dorati's business entirely. what do you say? piddock american airlines ian u.s. airlines apple said they can stand alone. they are in bankruptcy and that they would restructure to stand alone and in fact, they have demonstrated billions of dollars of revenue this past quarter by standing alone. the merger however could potentially, it affects over 1,000 routes throughout our country but florida is involved because 20 percent

over 20 percent effective floridians. >> when you really break down the route that is dominated by the new the fis on created seven nonstop routes will be monopolized we have national, reagan's national, charlotte, miami, reagan national and the list goes on and on and a lot of it includes miami. >> if this merger goes through it would affect possibly 69 percent of the slots that ray given that is a lot. gerri: people say maybe this would be dropped if they would negotiate away some of those slots but what would happen?

so with those mergers going back through 2008 united continental, what happened? fares have only gone up 8% but baggage fees are three times higher than what they were. cancellation fees are through the roof. look at that track record in the mergers and refined is consumers and business people, people going there for a vacation -- vacation are paying more and more. >> and also affect frequent-flier advantage points as well as change fees if you need to change your flight and in florida we are a business friendly states and they tend to buy tickets at the last minute so that could be affected potentially.

and i am telling you right now it is a great place to me we went to keep the fares lowe's of people come to our gorgeous state. gerri: frequent fliers being added disadvantage the company said no. what do you see about the frequent flier program? it potentially could be adversely affected a and that is our next step to be in front of us district judge and we will go from there. gerri: that is the next point of contact but i know if you can answer this but we have had 1 billion mergers come actually 190 airline mergers over decades. there has nothing but consolidation going back over a long period of time. at some point don't you

think this begins to impact what we pay for air fare? >> that is what this is about. one of the reasons this lawsuit has ben filed we have to have competition among airlines a we have to protect consumers. >> united continental merger the prices went up 57%. it could be your future. thank you for coming on. great to see you. >> you to. gerri: what do you think? is the airline merger happens to expect prices to rise? we will show you the results at the end of the show. we look forward to the merger now look at the blackout 10 years ago today a massive black out crippled most of the nation. 50 million people lost power

in commuters across the northeast stopped in their tracks making it the worst electrical failure in north america's history. to date the grid is still vulnerable facing threats. here to discuss where we stand is the ipo -- c0 of ipo holdings. looking at pictures of we we're doing when this happened today, are we still at risk? >> absolutely. we have done a lot of things to minimize some of the risk but as we worked in one area to minimize risk, we see it accelerating in other areas. one of the things that you have to add to your thought process is the american society of the d rating not

very good. gerri: that is not very good. what is needed here? what should we be doing otherwise? >> the fact is the reason my expenses are going up is most of the equipment on the grid especially in areas where the performance of the grid is that it is very old. all lots of it was installed about the time i graduated from college. of course, you expect to see maintenance go up it is out -- updated it needs to be replaced. gerri: there also additional threats. are we well-positioned for those? >> after 2003 we realized we

needed to control and monitor the system much more diligently because a lot of the things that caused it to propagate went unnoticed until it was too late so it was spent on computer control equipment but that opens the door to cyberattacks and of course, i know we just had one here in the united states today on the news network or something like that but the grid is truly an area where we have to put more dollars and more security measures to keep ahead. gerri: this sounds like we are not ready for that kind of threat. >> if you stay ahead you never know if you are ready and tell what happens we have had some attacks on the grid on a spot basis even on the physical side people

will physically damage the system of intentionally and of course, the robustness of the system is that if you damage to right equipment we will have problems. gerri: in looking at what happened it was a tree touching a power line in ohio with a cascade through eight states could something that simple happen again or are we passed that? >> since that time congress and the regulatory commission has put rules in place not dissimilar to what they have with the airlines for safety standards in reliability standards. we are out there like all the other transmission orders trimming and cutting trees and of course, i tell people in my job you're not very popular when you cut the tree down but that

caused about $8 billion worth of economic damage with 50 million customers out of service. >> i know that hold the bay very well. >> you look great for graduating in the '70s. thank you for the year. >> thank you very much. [laughter] gerri: answer to the question how do you do that? how to protect yourself from hackers and waste fraud and abuse charges as new reports show the group is in a lot of data. we will explain. when we made our commitment to the gulflf, bp had two big goa:

help the gulf recover and learn from what happened so we could be a better, safer energy company. help the gulf i can tell you - safety is atn the heart of everything we do.d we've added cutting-edge technology, help the gulf i can tell you - safety is atn like a new deepwater well cap.d and a state-of-thert monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're s sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.

gerri: the clinton foundation operation under fire with criticism despite bringing in large amounts of donations it has been running multibillion-dollar deficits according to the

new york times. with more on this we have the editor of the national review. i could not help myself "the new york times" criticizing the clintons saying they bring all this money in the front door but losses over and over. five '01 c3 they get the taxpayer exemption, there is something about this is not right. >> lois lerner must have signed off on this one but they lost $40 million? id 8 billion last year and they are raking it in handover flat and they say it all goes to grants and programming but we're having trouble with the operating expenses but it is run by a lot of people who are not necessarily organization all geniuses and a major hand of the foundation tried to run hillary's health care foundation he is brilliant but not good at running things so it is a very clintonia effort.

good work also celebrity hobnobbing, politics, and influence peddling so it is a mass. gerri: so there is a water program in africa and they apply for pharmaceuticals in bulks up so there is good stuff and then funding campaigns so how did you bring those together under the same umbrella to get taxpayer protection? here is what got me going. one of the celebrities benefited was natalie portman and flew with her prized pet yorkie dog. >> you have something against yorkie's? [laughter] so often you can write a 5,000 one dash 5,000 word but it is very long that was one little detail.

[laughter] it focuses on clinton's surrogate son that started a consultancy that had the spinoff of the foundation but he is really benefiting in making the defense -- benefits he urges people to give to the foundation that our clients than the anecdote about a coca-cola's ceo being on the platform with bill clinton talking about his good works in africa and if you are a ceo that type of exposure canoe could be a the husband of a future president is priceless and ordinarily cannot be bought. gerri: is there anything illegal or does it just smells bad? >> it just smells bad bet i

of the big "new york times" critic but sometimes they really nailing into big pieces and they have in this case. it is just the beginning because hillary's operation is moving into the foundations of we will see more scrutiny over time. gerri: did i mention that natalie portman flew? i have nothing against her. >> what about flying coach? [laughter] gerri: good job. one day after carl icahn tweets about the company the apple stock is soaring and baby monitors arrived cams, hackers are getting in how to protect yourself and your family. stay with us. weekdays are for rising to the challenge.

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gerri: criminals find new ways to break into your home how a hacker access to a child's bedroom.

gerri: this next story is downright creepy. a couple in houston texas blast terrified after hearing a strange man cursing from there to year-old daughter's bedroom. when they ran in to see who had broken and it was coming from her baby monitor. that after had taken over began shouting at the parents calling the child by name for our next guest says everyday devices could wind

up with the same fate joining me now is john, welcome back. this is so crazy and upsetting. when he said we will not repeat but it is gross. why would he do this? >> but the video feed coming from within the house they do it because they can and it is a challenge they love the thrill of control and because their plane sec -- played 67 anybody could hack into a baby monitor? >> it is probably a cliche to say it is taking candy from of baby food not have taken steps to protect that device is as easy as hacking anything else.

gerri: what you would consider a personal device could be packed into with heart monitors, in plants these are all connected to the web so you're always at risk of somebody have been in. >> it is disturbing if it is digital is taxable. we have seen blood palms sabotaging even break supplied inside a car that is moving by someone remotely and in many cases the victims never know how this is happening. gerri: is this for fun or do they get somebody -- sending out of it? there is a tv show with the president is targeted. how far off are we? >> all lots of times it is a joy ride but there are more and more cases where they try to get data whether we're your child is in the

house was what they do with self loans and gps and photos that show where in the house the kid is cover the use disinformation for horrible things. gerri: how do i protect myself that the next voice is not a jerk trying to scare the heck out of me? >> it is the same thing to protect your other devices. number one by the high quality defies common digital not analog. then update the software immediately and change default passwords do not share across multiple devices. gerri: i am so disturbed by this story but the info you have tips to help us out. we really appreciated. thank you. >> goal is a pleasure coming up next we talk about apple

is the stock a buy? in the post office revamps programs as part of efforts to raise revenue but all for naught to? we have a live report. stay with us. this man iabout to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally.

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or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and meditions. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarg or painful breasts; problems breathing while sleeping; and blood clots in the ls. common side effects include skin redness o irritation where applied, increasered blood cell count, headache, diarrhea, vomiting, and increase in psa. ask ur doctor about e only underarm low t treatment, axiron. gerri: you might be wondering why apple stock was showing improvement. passing the $500 mark for the first time since j. gary. but they have no new products. the real reason a single tweet that carl icon

announced on twitter 1.$5 billion price according to "the wall street journal" does that mean apple will provide for your portfolio? chief investment officer of cumberland advisers. welcome back to the show. we currently have a large position in apple we believe them to be extremely undervalued and i spoke to tim cook today. more to come. to we have to go to twitter for market moving news now? >> look where things have revolved. but investors need to be careful. apple is so large wait with the etf especially the tech sector but also broadbased. the market went down 80 think it created a deception in the market along with the

major indices we are in a cash position with the highest castes position in five years we think the market is afraid and that is the story. curl i can't -- carl icahn can't we told you once. gerri: but now i want to talk to you about the index you think it is not a by? >> i am not sure i would not put my own money into apple would not put a klansman be there ious etf so i would favor that that has a heavier weight to if i thought it would workout for the better but i am not so sure. you are concerned about to bring and how the market will take the news. we have a lot of news hitting the wires in september the federal

reserve, congress what to do with the nation's debt. >> we have two problems. we don't know what the policy is. taper tomorrow, timber, a the end of the year, how much common going on and on. the policy is not clear that we have the new fed chairman summers, and maybe somebody else obama mentioned it to other candidates but did not say who they were. we don't know who will make the policy which is a double uncertainty. we are developing a risk premium in the market pricing of stocks and debt instruments. because of that, what is the policy? who will make the policy? we don't know. gerri: how big of a sell-off can we see? >> i have ratcheted up cash

in four rounds, lover the allocations and raised cash bonds with tax-free available now above 5% in many jurisdictions that is nearly a nine or 10% taxable tax bracket.ield with the that is a big bargain competing against the stock market. gerri: not california? >> you are right on that. [laughter] gerri: interesting. i appreciate your time with the interesting analysis on apple. thank you. looking at stories on fox business and.com for growth stocks take a dive as earnings are reported for macy's after a strong july august will shape up to be a lackluster month after

hitting all-time highs. j.p. morgan chase employees have been charged trying to hide the $6 billion trading loss last year charged with wire fraud and to falsify findings. the pilot and the co-pilot of a ups cargo plane were killed early this morning it went down in a grassy field outside of birmingham alabama. witnesses say it was on fire before it crashed. consumers can search database to find out if recall repairs have been made for their the call. national highway transportation safety board says they will give customers access to search by the vehicle identification number. those are fostoria's right now. fox business.com. "fox business alert" your mailman could be your next

bartender pushing for the postal service being allowed to deliver beer and spirits to your door. >> the postal service trying to do ginned up revenue. sari. in a conference call today that postmaster general said alcoholic beverages and the ability to mail them or on the wish list as he considers way to raise revenue after losing $16 billion last year projecting billions more in losses. it says it could raise as much as $50 million per year. >> for example, of you aren't visiting zero winery in sonoma valley we have priority boxes it is very easy to pick up a couple to ship them from the winery not have to carry them in

the suitcase. >> right now ups and fedex have a lot on the shipment of alcoholic beverages the post office has been banned since 1909 that is when congress passed along with the temperance movement that led to prohibition earlier this month the government affairs committee introduced bipartisan legislation to change the law. gerri: i could see one big possible hitch. isn't every 16 and 17 year-old going to get a boost -- alcohol to the male? >> it is a potential hitch but the postmaster general says they require customers to go to the post office to pick up the order for alcoholic beverages in we presume that means when they do they will get carted.

gerri: a believable. so now they are like cops? you never know. [laughter] as kids had back-to-school we'll get a new program using taxpayer money for school vouchers. 10 months after superstorm sandy a new law goes into place to make flood insurance cost skyrocket. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chroc bronchit. spiriva is a once-daily haled copd maintenance treatment at helpspen my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems,

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gerri: allot stop being the national flood insurance project to go further into debt now people are seeing their premiums rise. what we talk about here is flood insurance. more and more people need it these days than what we're finding is after the new law was passed people are

starting to not be able to afford it. what is going on? >> today carries a $24 billion debt that quite frankly it has no hope to pay off so the taxpayer carries that so the taxpayer -- congress said enough is enough. the 20 percent of policyholders, 1.1 million people are no longer eligible for those subsidies so immediately we see second homeowners even vacation homeowners were getting subsidies like palm beach. that will come to an end and repetitive loss properties flooded over and over and businesses will see subsidies eliminated over a couple of years with an increase of 5%. gerri: for taxpayers, this is a reprieve we bail them out every year and i don't have that multimillion dollar fancy property every year but some people do.

others are really worried because they cannot afford the insurance. how high? >> it depends where you live and the elevation of your home. if you are in an area that is at high risk for flooding , if you sell the home by the time it gets to the next homeowner, you could see rates that double but it will very. another thing going on at the same time is the flood program is remapping. we found overtime it simply is not accurate designed 30 plus years ago and we take a look at that so people would be hit with a second wave of increases as a result. gerri: or you are in the flood area. how do you know? >> go to floods sparked --

flood smart.gov or go to your insurance agent. gerri: people say they purchase less insurance because they think there will be government relief. they really use your taxpayer dollars to bail them out in the message is you can buy less insurance by your governor, it is the right thing to do but we don't want people to face back on their personal responsibility. gerri: also the bigger sandy, those republican governors posted for fiscal responsibility but now -- now they say it goes too far >> but for the long run we have to look at the situation and people have to pay their fair share. gerri: it is a tough situation. >> a pleasure to be back.

gerri: nearly 4 million americans at risk of flooding in many could be impacted by the flood insurance program and some states hit harder than others those with the most flood risk is the top five speaker number five new jersey evident after superstorm stand wear 67 square miles are in a flood zone. 154,000 people live there. number for new york. also we saw this with i read 300,000 people lived at sea level. number three california frequent storms push high tide with 325,000 people in danger of a storm surge. number two louisiana they know devastation to well after hurricane katrina eight years ago. 880,000 people with in the 12,000 square miles of flood zone the biggest area in the u.s.. number one florida.

, the 1.5 million of 700 square lines other states are virginia and south carolina. a new program using taxpayer dollars to provide school vouchers to those in the low-income neighborhood. one parent says this changed her life and the life of her son.

almost time for back-to-school. we will examine the results next.

gerri: state revenues are coming back so vague giveback expanding or created programs of taxpayer dollars to give private school vouchers to those in in the friedman foundation and as part in indianapolis. what is the goal behind these? >> we're looking at thousands and thousands of parents to have access to their to private schools so led every parent have the freedom to do choose whether public or at home or charter in have the freedom to access those. gerri: and catching on state to state?

>> 23 states and washington d.c. has voucher programs right now this year 11 states like now -- north carolina, ohio, indiana, iowa , wisconsin, arizona. gerri: decided is catching on. you used it to get your son into private school. how to the workout? >> he is much happier, doing well, not facing the same adversities there was a lot of violence and distractions and he does not have to deal with that now. gerri: he is now locked in on his glasses performing. spinning he thinks he will be the nba star but we try to guide him to academics with a plan b. [laughter] gerri: but he likes school? >> he loves it he likes to

be held accountable and his peers are held accountable. and he doesn't feel he needs to intervene and treat the teacher with more respect. gerri: he likes the discipline aspect? >> when we look at this a lot of criticism that they should go to public schools schools, private schools schools, educating kids, what do you make of that criticism? >> it is a false criticism competition works. also remember we only talk about state dollars it is a fraction of what we spend on kids. in indiana it is only $47 in ohio it is 6,000. when they spend 13,000 on public schools so we know the competition by private creates a better product for the less cost.

gerri: we have a story in your people getting public loans for daycare. that is so expensive it is here. tell me your process to get the voucher. >> i talked to the person who does financial aid of the school and i was told by a friend about the voucher and error was positive i would not qualify. financial aid% filled out the paperwork and i gave for the tax forms she said you are approved and i filled out the paperwork. very easy. gerri: what kind of track was your son on before and what about now? >> graduation? i asked -- absolutely one tim to graduate he wants to go to a private school that is very aggressive the one he was out was not as aggressive with disciplinary

problems prevented him from progressing at a rate that i thought he could do that. >> i expect him to progress. gerri: i think it is exciting is mom can say this woe we fighting it? are you up against opposition? >> we are. it is a big public school establishment with $700 billion of federal money and half of every state spends there budget on public schooling. but parents like her that make a fight worth while. her experience is proven by the data. we know the school voucher program kids are doing better, parents are more involved, the public schools are getting better and we spent less taxpayer money.

gerri: what can i do to get my son or daughter into these programs? >> scholarship, a tax credit programs, personal tax credit programs passing a $35 tax refundable credit you can do that with a personal tax credit. gerri: if you want to know how to play comet education savings account, thank you so much for coming on the show tonight. we appreciated. coming up tomorrow a shocking expose they had to educate your child we will show you how teachers leave it up to computer programs for what your child should be reading in the classroom. results? ridiculous. tomorrow. we will be back with the answer to the question of the day will airline prices result -- rise as a result

of the merger? stay with us. when we made our commitment to the gulf, bp had two big goals: help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy morsafely. our commitment has never been stronger.

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gerri: executives of american airlines are fighting the merger blocking by the government. pam bondi, who we spoke with at the top of the show said that this would drive up airfares. michael writes know, airlines already operate on various margins and with this merger airlines will create better synergy and lower operating costs. but another viewer disagrees. i hear you, john. 75% of you said yes on our online poll and 25% said no. finally, you know, i am a big fan of free and open market

making capitalism and the freedom of people to grow businesses. but when it comes to that merger to stop, they have a point there with the government. southwest in 2011, united and continental in 2010 and delta and northwest in 2008. more consolidation, fewer players, less competition. baggage fees have tripled, cancellation fees are through the roof. monopolizing several profitable routes where they will have no competition at all. i say that that is anti-capitalism and anti-open market.

that is my "two cents more". coming up tomorrow, do you love wine? if you do, we have a story on how to turn your love of wine into big bucks. see you tomorrow. lou: good evening, everybody, thank you for being with us. deadly violence in the streets of cairo today and more violence is expected as the military shuts down demonstrations supporting mohammed morsi. president obama tonight appears to be assuming the role of the great appeaser in the middle east. in northern africa, it seems to negotiating the interest of our allies with the taliban and supporting groups affiliated in syria and the muslim brotherhood's desire for a significant if not